No search results. Please enter a different search term.

2 Segment information

General information

Reporting is divided into the segments “Residential Customers”, “Enterprise Customers”, “Wholesale”, and “IT, Network & Infrastructure”, which are grouped under Swisscom Switzerland, as well as “Fastweb” and “Other Operating Segments”. “Group Headquarters”, which includes non-allocated costs, is reported separately.

Group Headquarters does not charge any management fees to other segments for its financial management services, nor does the IT, Network & Infrastructure segment charge any network costs to other segments. The remaining services between the segments are recharged at market prices. Segment expense encompasses the direct and indirect costs, which include personnel expense, other operating costs less capitalised costs of self-­constructed assets and other income. Retirement-benefit expense includes ordinary employer contributions. The difference between the ordinary employer contributions and the pension cost as provided for under IAS 19 is reported in the column “Eliminations”. In the first nine months of 2018, an expense of CHF 46 million is disclosed under “Eliminations” as a pension cost reconciliation item in accordance with IAS 19 (prior year: CHF 75 million). The results of the Residential Customers, Enterprise Customers and Wholesale segments correspond to a contribution margin before network costs. The segment result of IT, Network & Infrastructure consists of operating expenses and depreciation and amortisation less revenues from the rental and administration of buildings and vehicles as well as capitalised costs of property, plant and equipment and other income. The segment results of Swisscom Switzerland and of the Other Operating Segments do not reflect the retirement-benefit reconciliation item in accordance with IAS 19. The segment results of Fastweb correspond to the operating results.

Various areas have been transferred between the segments of Swisscom Switzerland. The prior-year figures have been restated accordingly.

Segment information 2018

2018, in CHF million

SwisscomSwitzerland

Fastweb

Otheroperatingsegments

GroupHead-quarters

Elimination

Total

Residential Customers

4,361

910

–

–

–

5,271

Corporate Business

1,737

647

406

–

–

2,790

Wholesale customers

434

194

–

–

–

628

Net revenue from external customers

6,532

1,751

406

–

–

8,689

Net revenue with other segments

59

6

248

1

(314)

–

Net revenue

6,591

1,757

654

1

(314)

8,689

Direct costs

(1,408)

(689)

(43)

–

21

(2,119)

Indirect costs 1

(2,522)

(508)

(472)

(74)

237

(3,339)

Segment result before depreciation and amortisation

2,661

560

139

(73)

(56)

3,231

Depreciation, amortisation and impairment losses

(1,138)

(432)

(42)

–

2

(1,610)

Segment result

1,523

128

97

(73)

(54)

1,621

Financial income and financial expense, net

(106)

Result of equity-accounted investees

3

Income before income taxes

1,518

Income tax expense

(305)

Net income

1,213

Segment result before depreciation and amortisation

2,661

560

139

(73)

(56)

3,231

Capital expenditure in property, plant and equipment and intangible assets

(1,102)

(501)

(31)

–

13

(1,621)

Change in provisions

(58)

2

(1)

7

–

(50)

Change in defined benefit obligations

5

–

(1)

(2)

45

47

Change in operating net working capital

(287)

(13)

(1)

22

(10)

(289)

Other 2

(3)

–

–

–

–

(3)

Operating free cash flow

1,216

48

105

(46)

(8)

1,315

1 Including capitalised costs of self-constructed assets and other income.

2 Proceeds from the sale of property, plant and equipment, non-cash change in net working capital from operating activities, change in deferred gain from the sale and leaseback of real estate, and dividend payments to owners of non-controlling interests.

Segment information Swisscom Switzerland 2018

2018, in CHF million

ResidentialCustomers

EnterpriseCustomers

Wholesale

IT,Network &Infrastructure

Elimination

TotalSwisscomSwitzerland

Telecom services

3,906

783

–

–

–

4,689

Solution business

–

768

–

–

–

768

Merchandise

351

153

–

–

–

504

Wholesale

–

–

434

–

–

434

Other revenue

104

18

–

15

–

137

Net revenue from external customers

4,361

1,722

434

15

–

6,532

Intersegment revenue

61

78

244

104

(428)

59

Net revenue

4,422

1,800

678

119

(428)

6,591

Direct costs

(1,003)

(552)

(323)

(8)

478

(1,408)

Indirect costs 1

(827)

(667)

(13)

(965)

(50)

(2,522)

Segment result before depreciation and amortisation

2,592

581

342

(854)

–

2,661

Depreciation, amortisation and impairment losses

(109)

(54)

–

(976)

1

(1,138)

Segment result

2,483

527

342

(1,830)

1

1,523

Capital expenditure in property, plant and equipment and intangible assets

(116)

(38)

–

(947)

(1)

(1,102)

1 Including capitalised costs of self-constructed assets and other income.

Segment information 2017

2017, in CHF million, restated

SwisscomSwitzerland

Fastweb

Otheroperatingsegments

GroupHead-quarters

Elimination

Total

Residential Customers

4,456

793

–

–

–

5,249

Corporate Business

1,790

569

383

1

–

2,743

Wholesale customers

430

182

–

–

–

612

Net revenue from external customers

6,676

1,544

383

1

–

8,604

Net revenue with other segments

61

7

229

1

(298)

–

Net revenue

6,737

1,551

612

2

(298)

8,604

Direct costs

(1,367)

(541)

(23)

–

20

(1,911)

Indirect costs 1

(2,609)

(382)

(460)

(73)

185

(3,339)

Segment result before depreciation and amortisation

2,761

628

129

(71)

(93)

3,354

Depreciation, amortisation and impairment losses

(1,115)

(427)

(50)

–

4

(1,588)

Segment result

1,646

201

79

(71)

(89)

1,766

Financial income and financial expense, net

(118)

Result of equity-accounted investees

(6)

Income before income taxes

1,642

Income tax expense

(373)

Net income

1,269

Segment result before depreciation and amortisation

2,761

628

129

(71)

(93)

3,354

Capital expenditure in property, plant and equipment and intangible assets

(1,083)

(484)

(39)

–

19

(1,587)

Change in provisions

(35)

(4)

2

(4)

–

(41)

Change in defined benefit obligations

(21)

–

–

(52)

75

2

Change in operating net working capital

(48)

16

(14)

11

(11)

(46)

Other 2

(10)

–

(10)

Operating free cash flow

1,564

156

78

(116)

(10)

1,672

1 Including capitalised costs of self-constructed assets and other income.

2 Proceeds from the sale of property, plant and equipment, non-cash change in net working capital from operating activities, change in deferred gain from the sale and leaseback of real estate, and dividend payments to owners of non-controlling interests.

Segment information Swisscom Switzerland 2017

2017, in CHF million, restated

ResidentialCustomers

EnterpriseCustomers

Wholesale

IT,Network &Infrastructure

Elimination

TotalSwisscomSwitzerland

Telecom services

4,039

829

–

–

–

4,868

Solution business

–

796

–

–

–

796

Merchandise

304

130

–

–

–

434

Wholesale

–

–

430

–

–

430

Other revenue

113

16

–

19

–

148

Net revenue from external customers

4,456

1,771

430

19

–

6,676

Intersegment revenue

61

81

268

106

(455)

61

Net revenue

4,517

1,852

698

125

(455)

6,737

Direct costs

(977)

(536)

(354)

(9)

509

(1,367)

Indirect costs 1

(851)

(693)

(14)

(996)

(55)

(2,609)

Segment result before depreciation and amortisation

2,689

623

330

(880)

(1)

2,761

Depreciation, amortisation and impairment losses

(96)

(59)

–

(961)

1

(1,115)

Segment result

2,593

564

330

(1,841)

–

1,646

Capital expenditure in property, plant and equipment and intangible assets

(125)

(50)

–

(907)

(1)

(1,083)

1 Including capitalised costs of self-constructed assets and other income.